The End Of Capitalism Is Already Starting–If You Know Where To Look

My Comments: I argued last week (Is Capitalism Killing America?) that pure communism and pure capitalism are flawed economic models for society. They simply define the ends of a continuum along which we as a society are struggling to place ourselves.

I think this topic needs a better understanding. Mindful that economics is as easy to understand as Gaelic to any newcomer, an effort to get ones arms around it will go a long way toward solving the political riddle that is consuming us these days, not just in America but across the planet.

In terms of how the underlying economic model defines our lives, at one end, the individual has complete freedom to say and do whatever comes to mind. At the other end, the individual has virtually no freedom to say and do. Control instead lies with the state, which in today’s world means a geographically defined area administered by the state.

In times past, this might have been a kingdom, or perhaps a tribal group with loosely defined geographic borders. Today we are defined by areas with largely agreed upon boundaries which 99% of the world’s population accepts as reality.

The challenge for all of us it to determine just where on that continuum is the soft spot that defines a comfort zone for those living within those agreed upon boundaries. These comments by Eillie Anzilotti help us better understand the search for equilibrium.

By Eillie Anzilotti / Sep 18, 2017

These days, Richard Wolff is feeling pretty glad he stuck around teaching this long. Now in his 70s and lecturing at the New School University and having become, over the course of his nearly 50-year-long professorial career, one of America’s most prominent Marxist economists, Wolff is used to being fringe. That’s no longer a word that can apply to him, or to his ideas. Over the summer, inequality experts Jason Hickel and Martin Kirk launched a conversation on this site when they posed the theory that capitalism is at the core of the many crises gripping our world today. To Wolff, that’s not news. But it is new to him to see the same ideas he has taught for decades being met not with scorn or skepticism, but with genuine interest.

In 2011, the same year that Occupy Wall Street injected dissatisfaction with the financial system into the American mainstream, Wolff founded Democracy at Work, a nonprofit that advocates for worker cooperatives–a business structure in which the employees own the company, and share decision-making power over salaries, schedules, and where profits are directed. “If I had to pinpoint right now where the transition away from capitalism is happening in the United States, it’s in worker co-ops,” Wolff says. Though he’s been championing the cause of cooperatives–a radically democratic departure from the top-down capitalist business structure–for years, certain recent events, like the 2008 recession and the presidency of Donald Trump, poster boy for corrupt capitalism, have galvanized a distinctly anti-capitalist movement in the U.S.

“Americans are getting closer and closer to understanding that they live in an economic system that is not working for them, and will not work for their kids,” Wolff says. Growing awareness that wages have been unable to keep up with inflated costs of living have left younger generations particularly disillusioned with capitalism’s ability to support their livelihoods, Wolff says, and with CEOs out-earning employees by sometimes as much as 800 to 1, it makes sense that public interest should be swinging toward a workplace model that encapsulates shared ownership, consensus-based decision making, and democratized wages.

Admittedly, Wolff acknowledges, a small boom in the number of worker-owned cooperatives in the U.S.–consecutive years of double-digit growth in co-ops since 2010 have brought the total up to around 350, employing around 5,000 people–does not exactly scream revolution. But perhaps that’s because historical precedents for alternatives to capitalism have conditioned us to expect its end to dramatic and cataclysmic.

But that might be mean we’re looking in the wrong places. “I don’t want people to think in terms of Russia and China,” Wolff says. In their pursuit of an alternative, Wolff says, those countries neglected to do the work of transition at the micro scale, instead initiating wide-sweeping reforms at the state level and leaving their populations in the lurch.

Instead, Wolff says, it’s instructive to look to the transition to capitalism, and understand that it’s the smaller waves and shifts in the way things are done that signal true change.

Before capitalism emerged in Europe, there was feudalism, a radically different system in which nothing–neither land nor labor–was for sale, and serfs orbited their feudal lord like ribbons tethered to a maypole. Feudalism’s inhumanity was different from capitalism’s: Instead of being unable to work and earn money to pay for rent and necessities, serfs were dependent on the lords for their livelihoods and their schedules and for a piece on land upon which to labor. Their stability was contingent on the lord’s generosity or lack thereof.

Sometimes, serfs would get squeezed, Wolff says–maybe a serf who was permitted to work his own land three days a week was cut down to two, and had to work on the lord’s the rest of the time, struggling to feed his family. Those serfs would run away. They’d jet off into the forests around the manors, where they’d encounter other runaway serfs (this is the origin of Robin Hood). That group of runaways, who’d cut ties with the feudal system, would establish their own villages, called communes. Without the lord controlling how the former serfs used their land and their resources, those free workers set up a system of production and trade in the communes that would eventually evolve into modern capitalism.

“The image of the transition from feudalism to capitalism was the French Revolution, and that was part of it,” Wolff says, “but it wasn’t the whole story. The actual transition was much slower, and not cataclysmic, and found in these serfs that ran away and set up something new.”

In the U.S., businesses converting to cooperative workplace models are the functional equivalent of those runaway serfs. Around 10 cities across the U.S. have, in recent years, launched initiatives specifically to support the development of worker co-ops, which have been especially beneficial in creating job and wage stability in low-income neighborhoods. Because workers are beholden to themselves and each other, rather than a CEO and a board of directors, the model parts ways with the capitalist structure and advances something that more closely resembles a true democratic system.

“This is the beginning of the end of capitalism,” Wolff says. “Whether these experiments–which is what we have to call them at this point–will congeal into a massive social transformation, I don’t know. But I do know that massive social transformations have never happened without this stage. This stage may not do it, but change won’t happen without it,” he adds. These subtle shifts away from capitalism are not just apparent in the development of more co-ops, Wolff says. Over the past year, he’s been called in to meet with CEOs at large financial firms, who seemed to Wolff to be steeling themselves for a dethroning. As CEOs continue to disproportionately outearn their employees, the call for a dismantling of the system has become loud enough that they seem to have no choice but to pay attention. While it’s a flimsy gesture, some have distributed their bonuses to their employees.

“The move toward co-ops and the change in consciousness I’ve witnessed in workplaces and among my students are the two mechanisms of transformation that are now underway globally, and I’d like to say–it’s more a wish than anything else–that it’s too late to stop them,” Wolff says. “And the sheer beauty of this is that nothing fuels this movement more than capitalism’s own troubles, and the displeasure, disaffection, and anxiety it produces.”

Of course, the thought currents and little blooms of democratic workplaces are not enough to engineer a new economic system. These developments are all happening outside of the political system; in the White House and in Congress, the presence of big capitalist businesses continues as strong asever. But the fact that local governments like New York City and Austin have launched incubator programs for worker-owned cooperatives indicates that they’re not incompatible with the current political system.

Could it look something like inviting Medicare and Medicaid recipients into the legislating body that decides the future of healthcare in this country? Could it look something like involving women in the legal processes that determines what resources they can access to care for their own bodies? Something like a cooperativized Housing and Urban Development department that brings those people it aims to serve into the process of determining how best to do so?

Or what about developing a justice system that relies not on removing people from the formal economy via mass incarceration, but that emphasizes cooperative employment and job training at both points of re-entry and pre-incarceration? Kimberly Westcott, associate counsel in the New York-based Community Service Society, a 172-year-old anti-poverty organization, has begun a program through Democracy at Work to teach cooperative work within prisons. If the cooperatives that could form inside prisons could function just like those on the other side, are the walls necessary?